DENVER, Dec. 29, 2014 /PRNewswire/ - (TSX:IMP) -
Intermap Technologies Corporation ("Intermap" or the
"Company"), is pleased to announce that on December 26, 2014, it completed a private
placement convertible debt financing for aggregate proceeds of
US$500,000 (the "Debt
Financing").
The Debt Financing matures on March 31,
2015 and the principal amount is convertible into common
shares of the Company (the "Common Shares") at the holder's
option into 8,333,333 Common Shares. Simple interest is payable at
maturity at an annual rate of 18.0%. If the principal amount is
converted into Common Shares, any interest payable on such
principal amount shall be forgiven and the Company shall cease to
owe, and the holder shall cease to have any right to payment of,
any interest amount. In addition, warrants were issued to the
holder of the convertible debt, entitling the holder to purchase up
to 1,666,667 Common Shares at a price of C$0.07 per share. The warrants expire in three
years and are subject to adjustment in certain events.
The Debt Financing is subject to a prepayment right by the
Company at 105% of the principal amount at any time from the date
of closing, subject to a 30 day notice period and the holder's
right to exercise his conversion rights during any such notice
period.
The proceeds of the Debt Financing will be used by the Company
for general operating purposes.
In conjunction with this convertible debt financing, the Company
has also applied to the TSX to amend the exercise price to
C$0.08 per share for outstanding
warrants to purchase 4,791,572 Common Shares of the Company held by
a prior note holder (the "Holder") from the Company's June 2012 and February
2014 convertible debt financings. The Holder is arm's length
to the Company. In addition to this re-pricing of the exercise
price, the Company also intends to issue new warrants to the Holder
to purchase 4,597,443 Common Shares of the Company with an exercise
price of C$0.08 per share and an
expiry date of February 6, 2017. The
amendment to the warrant exercise price and the issuance of the new
warrants are being given as consideration for the release by the
Holder of a first priority lien in certain of the Company's secured
assets and the sharing of security on the remainder of the
Company's assets on a pro-rata basis with the new lender under the
Company's Debt Financing discussed above. The amendments to the
warrant exercise price and the issuance of the new warrants are
subject to TSX approval.
About Intermap Technologies
Headquartered in Denver,
Colorado - Intermap (www.intermap.com) is an industry leader
in geospatial solutions on demand with its secure, cloud based
Orion Platform™. Through its powerful suite of 3DBI applications
and proprietary development of contiguous databases that fuse
volumes of geospatial data into a single source, the Orion Platform
is able to provide location- based solutions for customers in
diverse markets around the world. For more information please visit
www.intermap.com.
Intermap Reader Advisory
Certain information provided in this news release constitutes
forward-looking statements. The words "anticipate",
"expect"," project", "estimate", "forecast" and similar expressions
are intended to identify such forward-looking statements.
Although Intermap believes that these statements are based on
information and assumptions which are current, reasonable and
complete, these statements are necessarily subject to a variety of
known and unknown risks and uncertainties. You can find a
discussion of such risks and uncertainties in our Annual
Information Form and other securities filings. While the
Company makes these forward-looking statements in good faith,
should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may
vary significantly from those expected. Accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of
them do so, what benefits that the Company will derive therefrom.
All subsequent forward-looking statements, whether written or oral,
attributable to Intermap or persons acting on its behalf are
expressly qualified in their entirety by these cautionary
statements. The forward-looking statements contained in this
news release are made as at the date of this news release and the
Company does not undertake any obligation to update publicly or to
revise any of the forward-looking statements made herein, whether
as a result of new information, future events or otherwise, except
as may be required by applicable securities law.
SOURCE Intermap Technologies Corporation